Woolies lifts milk price to help drought-stricken farmers

Woolies lifts milk price to help drought-stricken farmers

It said it would also increase its 3L Own Brand milk from $3 to $3.30 in all states from Thursday until the end of the year.

"We're calling for it across the whole of Australia on all milk".

Before the announcement, Mr Bradley asked Australians to boycott Coles for failing to help farmers.

The temporary 10 cent per litre wholesale price increase will apply to Lion's Dairy Farmers and Pura white milk products sold in NSW, Queensland and Victoria from the beginning of October "for a period of time".

A drought-relief committee, with an independent auditor and dairy industry representation, will be set up to oversee the range and make sure the extra 10¢ a litre paid to suppliers is distributed to dairy farmers.

"There's no doubt many dairy farmers are doing it tough in the face of the drought and we're keen to support them through this hard time", Paul Harker, Woolworths Director of Fresh Food, said.

"We need to give farmers more bargaining power and help them get a fair return out of the market so they aren't going cap-in-hand to processors and retailers".

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Customers will be able to purchase the Drought Relief range which will have been sourced directly from farmers in affected areas.

Woolworths was recently at the centre of an ACCC inquiry into the nation's dairy industry in the so-called milk wars. Coles will run the $3.30 price until the end of the year.

Australia's two major supermarkets will put a levy of 10 cents a litre on a special drought relief milk.

He added that while the 10 cent per litre extra for the farmers wouldn't solve their problems as Woolworths-branded milk account for less than five percent of the country's total milk production, it would still help in the easing of some of the immediate pressure brought on by drought.

The move from Woolworths comes a day after Prime Minister Scott Morrison announced a national drought summit will be held next month.

But Mr Richardson said it was positive that the devastating impact of the drought had been acknowledged by the supermarkets.

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